Embassy Office Parks REIT – Embassy Office Parks REIT is the owner of a high quality office portfolio in India that comprises seven best-in-class office parks and four prime city-center office buildings totaling 32.7 msf as of 31 December 2018. These assets also include two completed and two under-construction hotels totaling 1,096 keys, food courts, employee transportation and childcare facilities.
These properties are spread in the best performing submarkets of India’s key office markets of Bengaluru, Pune, Mumbai and Noida. Approximately 80.9% of the Gross Rentals from its 160+ marquee tenant base is contracted with leading multinational corporations and approximately 43.4% is contracted with Fortune 500 companies such as JP Morgan, IBM and Microsoft, as of 31 December 2018. When listed, it will be India’s first REIT IPO.
Sponsors of Embassy Office Parks REIT – Embassy Sponsor, Blackstone Sponsor
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Embassy Office Parks REIT IPO details |
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| Subscription Dates | 18 – 20 March 2019 |
| Price Band | INR299 – 300 per unit |
| Total IPO Size | 129,556,000 units (INR3873.72 – 3,886.68 crore) |
| Minimum Order Quantity | 800 units |
| Market Lot | 400 units |
| Face Value | NA |
| Non institutional Investor portion | 25% |
| Listing On | NSE, BSE |
Use of Proceeds
- Partial or full repayment or pre-payment of bank/ financial institution debt of certain Asset SPVs and the Investment Entity – INR3,710 crore
- Payment of consideration for acquisition of the Embassy One Assets currently held by EODPL – INR460 crore
- General Purposes
Read more about Embassy REIT IPO
Embassy REIT IPO Review: Should you invest in India’s first REIT offer?
| Embassy Office Parks REIT’s financial performance (in INR crore) | ||||||
| FY2016 | FY2017 | FY2018 | 9M FY2019 | |||
| Total revenues | 1,575.4 | 1,645.6 | 1,766.3 | 1,493.2 | ||
| Profit after tax | 93.2 | 177.1 | 256.9 | 285.1 | ||
| Net margin (%) | 5.9 | 10.8 | 14.5 | 19.1 | ||
Embassy Office Parks REIT Contact Details
Embassy Office Parks REIT
Royal Oaks, Embassy Golf Links Business Park
Off Intermediate Ring Road
Bengaluru 560 071
Phone: +91 80 3322 0000
Email: [email protected]
Website: www.embassyofficeparks.com
Registrar of Embassy Office Parks REIT IPO
Karvy Fintech Private Limited
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana
Phone: +91 40 6716 2222
Fax: +91 40 2343 1551
Email: [email protected]
Website: www.karvyfintech.com
Valuation of Embassy Office Parks REIT (As of 31 Dec 2018)
Earnings Per Unit (EPU): INR3.33
Price/Earnings (PE ratio): 89.79 – 90.09
Net Asset Value (NAV): INR376 per share
Embassy Office Parks REIT IPO Subscription Details
| Category | Shares offered | Subscription (no. of times) | ||
| Day 1 | Day 2 | Day 3 | ||
| Institutional Investors | 38,866,800 | 0.30 | 0.59 | 2.14 |
| Non Institutional Investors | 32,389,600 | 0.07 | 0.32 | 3.02 |
| Total | 71,256,400 | 0.19 | 0.47 | 2.54 |
Embassy Office Parks REIT IPO Allotment Status
Embassy Office Parks REIT IPO allotment status is now available on Karvy website. Click on this link to get allotment status.
Listing Performance of Embassy Office Parks REIT
IPO Opening Date: 18 March 2019
IPO Closing Date: 20 March 2019
Finalisation of Basis of Allotment: 28 March 2019
Initiation of refunds: 29 March 2019
Listing Date: 1 April 2019
Listing Price on NSE: INR308 per unit (up 2.67% from IPO price)
Closing Price on NSE: INR314.67 per unit (up 4.89% from IPO price)
You have stated earning per unit at abt 3 rs. But with abt 12 crore units and a pat of abt 250 crores, the earning per unit should be abt 20 rs. Or i am missing something.
Pls advise
Thanks for your comment, Adesh.
The comapny has stated that the total number of units post issue is 771,665,343 which forms the basis of our calculations. Check the “Basis of issue price” document on NSE site:
https://www.nseindia.com/products/content/equities/ipos/ipo_current_embassy.htm
Net earning is around 250 crores. Revenue is ~2000 crores.
I don’t see this in IPO section in ICICI Direct. Any idea how i can apply through ICICI or Zerodha?
Naveen, it will start appearing on the IPO opening date i.e. 18th.
Kotak Mahindra and Radhakishan Damani two of the most astute investors in India are among anchor investors. This is worth buying I say. There will be capital appreciation as well apart from the rental yield which REITs are famous for here in US.
Everything looks ok. But main concern is PE ratio. This is 89. Compare it with Singapore REIT whicis 17.
https://sg.finance.yahoo.com/quote/A17U.SI/.
What makes Indian REIT 5 times more expensive. I was very excited by this offer until I digged deep. I went through offer document. Calculations in ipocentral matched mine. Thanks IPOCentral.
There is a report in Mint newspaper that the ipo may face a glitch due to creditors raising alarm on one of the partners. It looks there will be some clarification needed from SEBI
https://www.livemint.com/market/stock-market-news/embassy-reit-share-sale-faces-last-minute-hurdle-1552843687525.html
I cannot see an option to buy on ICICI direct. Any idea why? Is it time window closed already?